Ford is closing three production factories along with general production in Brazil. OCcompany announced the plans today and gave more details, while reaffirming to those in the South American market that, despite the closings, remains committed to the region.
Two blue oval production lines in Brazil to be closed immediately. The Camaçari and Taubaté plants will close production, while the Troller plant in Horizonte, in the state of Ceará, will close production in the fourth quarter of 2021.
Ford promises to continue serving the South American market with cars produced in Argentina and Uruguay, where they assemble some models will continue. The Ford Ranger is one of those models; is produced in Argentina.
Press reports cite the FordCEO, Jim Farley, who said:
“With more than a century in South America and Brazil, we know that these are very difficult actions, but necessary to create a healthy and sustainable business. We are moving towards an agile and lighter business model in Brazil and to offer these customers some of the best and most exciting cars in our global portfolio. We are also rushing to provide our customers with the benefits of connectivity, electrification and autonomous technologies in order to efficiently meet the need for environmentally friendly and future-proof cars.
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Ford continues to emphasize that the only thing that is closing in Brazil is production. But for the South American country is an understandably solemn announcement, as the closure will affect many of the country’s workers. Ford says it is coordinating with affected parties to improve the news.
And it is not the first time that a Brazilian Ford factory is closed. Remember that the automaker closed its factory in São Bernardo do Campo last year. The notable difference here is that car production is ceasing across the country.
The report also quotes Lyle Watters, president of Ford South America and the International Markets group:
In addition to reducing costs in all aspects of the business, we oversee the launch of Ranger Storm, Territory and Kuga, as well as introducing innovative services to our customers. Although these efforts have had positive results during the last quarters of the fiscal year, the continued unfavorable economic conditions and the additional burden of the pandemic made it clear that it was necessary to do so to create a sustainable and sustainable future.
Therefore, although Farley was not explicit, Watters noted the effect the pandemic had on the company. However, Ford’s foot centerroduct ddevelopment in Bahia and its proving ground in Tatuí, São Paulo, will remain open. Ford’s regional headquarters will also remain open.
The two factories that are currently in the process of decelerating will remain in operation only to produce parts necessary to increase spare parts inventories in the country. But vehicle production is closing at the factories, and when the country’s dealerships run out of EcoSport, Kaand Troller T4 models, sales of these will be finalized.
These three models face an uncertain future now, and among I will regret Ka more, although the Troller T4 is a close second. We will contact Ford and provide any updates that the automaker provides.
UPDATE [Monday, January 11, 2021, 06:05 PM CT]
A Ford Motor Company spokesman answered our question about plant closings, stating:
We will meet the needs of South American customers, including Brazil, with a variety of modern, connected SUVs, pickup trucks and commercial vehicles from Argentina, Uruguay and other regions. In addition to the recently announced Transit, New-Gen Ranger, Mach-1 Mustang, Bronco, we will be introducing several new vehicles, including some new competitors and a plug-in. This includes the expansion of connected services and the introduction of new automated and electrified technologies in the markets.
As we said today, production will immediately cease in Camaçari and Taubaté, with the production of some parts continuing for a few months to support inventories for aftermarket sales. Troller’s plant in Horizonte will continue to operate until the fourth quarter of 2021. As a result, the company will end sales of EcoSport, Ka and T4 as soon as stocks are sold. Manufacturing operations in Argentina and Uruguay and sales companies in other SA markets are not affected.
In Argentina, manufacturing operations will not be affected and the investment plan to produce the next generation Ranger continues as planned. Ka’s sales will continue until stocks run out and EcoSport’s sales will continue to be obtained in an alternative region for Consortium customers.